The intersection of aggregate demand and long-run aggregate supply identify the price level at which total planned
A) government spending equals total planned tax revenues.
B) real expenditures equal actual nominal GDP.
C) real expenditures equal total planned production.
D) export spending equals total planned import spending.
C
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According to this Application, how will an increase in government spending on entitlement programs affect the macroeconomy?
A) It will increase aggregate demand. B) It will increase aggregate supply. C) It will decrease aggregate demand. D) It will decrease aggregate supply.
When the Fed increases the quantity of money, the
A) demand for money curve shifts rightward. B) equilibrium nominal interest rate falls. C) equilibrium nominal interest rate rises. D) supply of money curve shifts leftward. E) demand for money curve shifts leftward.